TSR, Inc. Reports Results for the Fiscal Year and Fourth Quarter Ended May 31, 2023
Annual Revenues Exceeded $100mm for the first time in Company’s History
Company Recorded Highest Operating Income in over 15 years
HAUPPAUGE, N.Y., August 11, 2023--(BUSINESS WIRE)--TSR, Inc. (Nasdaq: TSRI) ("TSR" or "The Company"), a provider of information technology consulting and recruiting services, today announced financial results for the fiscal year and fourth quarter ended May 31, 2023.
For the quarter ended May 31, 2023, revenue decreased 4.8% from the same quarter last year to $24.9 million. Net income attributable to TSR for the current quarter was $494,000, or $0.22 per diluted share, as compared to $321,000, or $0.15 per share, in the prior year’s fourth quarter. The Company ended the quarter with a strong balance sheet with $13.5 million in net working capital or approximately $6.32 per share.
For the year ended May 31, 2023, revenue increased 4.2% to $101.4 million as compared to revenue of $97.3 million in the prior year. Net income attributable to TSR for the current year was $1,742,000, or $0.78 per diluted share, as compared to $6,929,000, or $3.30 per diluted share in the prior year. The prior year benefitted from a gain of $6,735,000 from forgiveness of the principal on the PPP loan and related accrued interest expense.
Thomas Salerno, our CEO, stated: "Improvements this quarter resulted in income from operations of $716,000 as compared to $356,000 in the prior year’s fourth quarter. We continued to focus on our more specialized and higher margin IT business and are seeing solid results from our fledgling permanent placement business. As always, we continue to focus on controlling costs, which has helped us increase profitability in the fiscal fourth quarter.
We continue to navigate an uncertain macro-economic environment, but we are optimistic that revenue and income will grow. The team continues to make progress with new customers and I am proud of their effort to offer our legacy customers some of the best service in the business. We believe that TSR is well-positioned in the industry and has a strong balance sheet."
The Company will file its Form 10-K for the fiscal year ended May 31, 2023 today with further details at www.sec.gov.
About TSR, Inc.
Founded in 1969, TSR, Inc. is a leading staffing company focused on recruiting Information Technology professionals for short- and long-term assignments, permanent placements, and project work. For over 50 years, TSR has successfully served clients in banking, asset management, pharmaceuticals, insurance, health care, public utility, publishing, and other industries. We provide candidate screening, timely placement and a real understanding of the right skill sets required by our clients. To learn more, please visit our website at www.tsrconsulting.com.
Certain statements contained herein, including statements as to the Company’s plans, future prospects and future cash flow requirements are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those set forth in the forward-looking statements due to known and unknown risks and uncertainties, including but not limited to the following: the statements concerning the success of the Company’s plan for growth, both internally and through the previously announced pursuit of suitable acquisition candidates; the successful integration of announced and completed acquisitions and any related benefits therefrom; the impact of adverse economic conditions on client spending which have a negative impact on the Company’s business; risks relating to the competitive nature of the markets for contract computer programming services; the extent to which market conditions for the Company’s contract computer programming services will continue to adversely affect the Company’s business; the concentration of the Company’s business with certain customers; uncertainty as to the Company’s ability to maintain its relations with existing customers and expand its business; the impact of changes in the industry such as the use of vendor management companies in connection with the consultant procurement process; the increase in customers moving IT operations offshore; the Company’s ability to adapt to changing market conditions; the risks, uncertainties and expense of the legal proceedings to which the Company is a party; and other risks and uncertainties described in the Company’s filings under the Securities Exchange Act of 1934. The Company is under no obligation to publicly update or revise forward-looking statements.
Three Months Ending May 31, | Fiscal Year Ending May 31, | |||||||||||||||
2023 Unaudited | 2022 Unaudited | 2023 Unaudited | 2022 Unaudited | |||||||||||||
Revenue, net | $ | 24,946,000 | $ | 26,200,000 | $ | 101,433,000 | $ | 97,312,000 | ||||||||
Cost of sales | 20,513,000 | 21,853,000 | 83,947,000 | 81,314,000 | ||||||||||||
Selling, general and administrative expenses | 3,717,000 | 3,991,000 | 14,789,000 | 15,620,000 | ||||||||||||
24,230,000 | 25,844,000 | 98,736,000 | 96,934,000 | |||||||||||||
Income from operations | 716,000 | 356,000 | 2,697,000 | 378,000 | ||||||||||||
Other income (expense), net | (3,000 | ) | (24,000 | ) | (63,000 | ) | 6,623,000 | |||||||||
Pre-tax income | 713,000 | 332,000 | 2,634,000 | 7,001,000 | ||||||||||||
Income tax provision (benefit) | 202,000 | - | 831,000 | (1,000 | ) | |||||||||||
Consolidated net income | 511,000 | 332,000 | 1,803,000 | 7,002,000 | ||||||||||||
Less: Net income attributable to noncontrolling interest | 17,000 | 1,000 | 61,000 | 73,000 | ||||||||||||
Net income attributable to TSR, Inc. | $ | 494,000 | $ | 331,000 | $ | 1,742,000 | $ | 6,929,000 | ||||||||
Basic net income per TSR, Inc. common share | $ | 0.23 | $ | 0.15 | $ | 0.81 | $ | 3.42 | ||||||||
Diluted net income per TSR, Inc. common share | $ | 0.22 | $ | 0.15 | $ | 0.78 | $ | 3.30 | ||||||||
Basic weighted average common shares outstanding | 2,144,322 | 2,146,448 | 2,141,363 | 2,024,325 | ||||||||||||
Diluted weighted average common shares outstanding | 2,246,308 | 2,233,496 | 2,237,935 | 2,097,898 | ||||||||||||
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Contacts
Thomas Salerno
631-231-0333
